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Global investors still failing to hit allocation targets

by Richard Fleming

The fourth annual Institutional Real Estate Allocations Monitor from Hodes Weill & Associates LP and Cornell University’s Baker Program in Real Estate shows that institutional investors around the world are continuing to raise their target allocations to real estate and are on track to break the 10 percent barrier next year, but at the same time are still significantly underinvested against their targets. The extent of the underinvestment varies by region.

The survey looked at the real estate investment activities of 228 global, regional and national institutional investors in 28 countries with a combined AUM of more than $10.3 trillion (€9.3 trillion) and total real estate assets of around $920 billion (€829 billion). As in previous years, significant variances were evident in the treatment of real estate investments by region, size and type of investor.